Want to invest in stocks and IPOs? Here is how you can open a demat account
- Like a savings account holds money, a
demat accountholds investors’ investments -- stocks, mutual fund units, bonds etc in one place.
- To invest in the stock market, it is mandatory to have a demat account.
- India’s penetration into financial markets is low, given only one in every 23 people has a demat account in the country.
AdvertisementIndia’s benchmark index Sensex, which has delivered 27% returns in the last one year has got a lot of investor attention, thereby increasing the number of demat account holders.
This is because it is mandatory to open a demat account in order to invest in any financial products. Like a savings account holds money, a demat account holds investors’ investments -- stocks, mutual fund units, bonds etc., in one place.
Demat account holders in the country increased by almost 50% to 6 crore as of June 2021, from 4.02 crore in February 2020.
If you're looking to invest in the stock market, debt instruments, mutual funds or even
Here are some example of brokers you can open your account with:
Motilal Oswal Angel One
- HDFC Securities
- 5 Paisa
- Paytm Money
While a demat account can be easily opened online now, one requires several documents to submit online for the know your customer (KYC).
- Identity proof from any one of these — Aadhaar card, PAN card, driving licence, voter ID card etc.
- Address proof from any one of these — passport, electricity bill, ration card, gas bill, landline telephone bill etc.
- Cancelled cheque of bank account you want to transact with.
- Proof of income from any of these — latest salary slips, income tax returns copy, bank statement for last 6 months, copy of Form 16.
Steps to open a demat account
Step 1: Choose the broker you want to open an account with.
Step 2: Visit the company’s website and start the demat account opening process.
AdvertisementStep 3: Fill out the information required for know your consumer (KYC).
Step 4: Submit the scanned copies including identity proof, bank account statement, income proof, photo to complete the KYC.
Step 5: After submitting all the documents and verifying it, pay the required amount for trading.
Step 6: At the end of the process you will receive a unique 16-digit beneficial owner identification number (demat account no.), which will be used to access the demat account online.
Step 7: Login with the demat account number and walk in to your investments.
SEE ALSO: SaaS firm RateGain’s IPO opens tomorrow — should you invest?
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